FI Minded - Financial Independence, Early Retirement & Lifestyle Design

There are going to be differences. And these differences are what lead to disagreements.

Imagine a scenario where you and your friends are booking an Airbnb for an upcoming trip. The group isn’t progressing, and you can tell by the tone people are getting frustrated. Half of the group wants a cheap option while the other half wants a nice place closer to the city center.

This kind of situation happens all of the time and if you zoom out, you can probably understand both perspectives. Someone might be trying to pay off their credit card debt, or student loans, or saving for an upcoming wedding but wants to go on the trip if it can fit within their budget. Another person might be buried in work and this is one of the few weeks they have gotten to take off and enjoy. Spending an extra couple of hundred dollars is worth it to them if it means the weekend turns from a good time to an unforgettable trip with their friends.

At the end of the day, both people want to spend time with their friends but there is conflict because they have other goals that need to fit into their plans. This is messy.

Layer on the fact that people make different amounts of money and that our upbringing makes us value money differently, you can see why these aren’t always straightforward decisions.

It’s not just friends either. These kinds of situations happen with our partners, family members, roommates, and more.

So how do we discuss money with these important people in our lives? And how do we stand up for ourselves whenever we are being asked to do something we don’t want to do?

Well, that’s why I interviewed Allie Volpe today. Allie is a senior reporter for Vox and recently covered a story on how to fight without ruining a relationship. The headline immediately caught my attention as I think this topic isn’t discussed enough in personal finance.

If you’re pursuing financial independence, you are probably aggressively saving or at least very aware of how you’re spending your money. There will be moments when you’ll have to make a decision and have an awkward conversation about money with someone close to you. Allie is going to be sharing language you can use during these situations, mistakes to avoid, and what to do whenever you just can’t see eye to eye.

Key Takeaways:

• The difference between a good fight and a bad fight
• Mistakes people make in an argument that leave the other side feeling terrible
• Questions to ask to get to the root of what you’re really arguing about
• How to listen and make someone feel heard
• How to get to a compromise
• Ways to handle your emotions whenever you’re getting upset
• What to do if you can’t see eye to eye

More of Allie:

Twitter: https://twitter.com/allieevolpe

More of The Struggle is Real:

Find show notes and more at https://www.tsirpodcast.com/

Connect with Justin on LinkedIn: https://www.linkedin.com/in/justinleepeters/

Yes, your path to financial independence is going to take work and sacrifice but it shouldn’t be miserable. Financial independence is not worth it if it means being unhappy for decades of your life. There should be lots of moments of fun because life is precious both before and after you reach FI.

So in today’s episode, Jackie Cummings Koski is back on the podcast to discuss five of her secrets for making your FIRE journey fun.

If you missed episode 64, first download it to listen to after this episode, and second, let me share a little about Jackie with you.

At 49 years old, Jackie reached financial independence and retired from “Corporate America.” This was an impressive feat in itself but even more impressive for someone who grew up poor, became a single mom in her 30s, and never had over a $100,000 salary. Jackie created her first net worth statement at 38 years old and went on a tear for the next decade saving and investing to comfortably retire before  50.

Now Jackie spends much of her time as a personal finance educator and recently wrote the book, FIRE for Dummies to help others retire early on their terms.

So if you want to reach financial independence and have some fun along the way, this episode is for you. I hope you enjoy my conversation with the dealer of $2 bills…Jackie Cummings Koski.

Key Takeaways:

• Where to cut expenses but more importantly, where to not
• Smart ways to integrate what you enjoy into your FIRE plans
• Understanding your why behind FIRE
• Where to start in your journey to FI
• Milestones to celebrate
• Why you don’t have to be flawless

More of Jackie:

FIRE for Dummies: https://www.amazon.com/FIRE-Dummies-Business-Personal-Finance/dp/1394235011

Catching Up to FI: https://catchinguptofi.com/financial-independence-podcast/

More of The Struggle is Real:

Find show notes and more at https://www.tsirpodcast.com/

Connect with Justin on LinkedIn: https://www.linkedin.com/in/justinleepeters/

Whether you consider yourself a writer or not, you’ve been asked to write before. This could be an essay for school, an email at work, or a caption for a post.  Sometimes when we are writing, we have a complete brain fart. No matter how hard we try, the words aren’t coming out. We write a sentence and delete it. We start writing another sentence, get halfway through it, and give up entirely.

Then other times, we sit down to write and the words effortlessly flow onto the page. Your thoughts are coming together nicely and you feel so focused.

You may have heard this term before but psychologists call this flow state. Signs of a flow state include focus, enjoyment, and persistence. You can be in flow while playing sports, reading, gardening, and many other activities.

Flow can be beneficial whenever it comes to work. It can help you accomplish challenging tasks, accelerate learning, and experience fewer distractions. All of these characteristics are important for being a high performer.

But can we put ourselves into a flow state rather than just relying on in-the-moment energy? Luckily there is and my friend Justine Elizabeth is here to share how we can do that. Justine is a Flow Coach who makes flow trainable so you can reach new heights without burning out.

I was a little skeptical about flow training. Of course, I’ve experienced flow states in the past but I was unsure if it was truly trainable. But as someone who is always looking to step up my performance both with work and my hobbies, I had to dive in and learn more about it. I should have never doubted her but I was pleasantly surprised with what I learned from Justine and I’ve already implemented her tips to enter a flow state whenever I know I have an important task to finish.

Justine is a student of this craft. I think she is a perfect teacher to introduce you to the power of Flow. 

Key Takeaways:

• What is flow?
• Benefits of flow
• The flow cycle
• Examples of flow aids and ailments
• How to more easily achieve a flow state
• Differentiating between a productive flow state and unhealthy overwork

More of Justine:

Website: https://theflowcodes.com/

Instagram: https://www.instagram.com/theflowcodes/

More of The Struggle is Real:

Find show notes and more at https://www.tsirpodcast.com/

Follow us on Instagram at https://www.instagram.com/tsirpod/

Humans are weird whenever it comes to money. We drive five miles out of the way to save a few cents on gas. We buy things we don’t need because they’re on sale. We don’t ask for a raise although we’ve been working hard at the same place for years.

We all have irrational behaviors when it comes to money and a lot of this has to do with psychology. Common biases impact our ability to make logical decisions. You’ve probably heard of a couple of these biases before. Some examples include the sunk-cost fallacy, anchoring, mental accounting, the status quo, and the bandwagon effect.

Although we’ll never be able to truly rid ourselves of these biases, there are practices that you can put into place to make more rational decisions.

My friend Paco de Leon is on the show today to talk about some of the reasons why we do the things we do and she’ll share exercises you can do to recognize and recover from situations that are impacting how you think and behave when it comes to money.

Paco is the perfect partner to have this conversation with because she is thinking and talking about this subject all of the time. She is the host of Weird Finance, a podcast for creatives who are looking for explanations of complex financial concepts in a friendly, approachable way. 

I know you’re really going to enjoy this one so buckle up. I hope you enjoy my conversation with the 1st gen immigrant, TED speaker, and founder of The Hell Yeah Group…Paco de Leon.

Key Takeaways:

• Why we are built to pay attention to scarcity and how that impacts our relationship with money
• How we can make better decisions by understanding our window of tolerance
• Curbing impulse buying with the $100 buy list
• Enjoying simplicity
• How to get comfortable with money
• Mine Yours and Ours budget

More of Paco:

Podcast - Weird Finance: https://thehellyeahgroup.com/weird-finance-listen-now

Book - Finance for the People: https://thehellyeahgroup.com/finance-for-the-people

More of The Struggle is Real:

Find show notes and more at https://www.tsirpodcast.com/

Work optionality is the idea that you work because you want to, not because you have to. As you’re listening to this in your 20s, this concept might seem like a pipe dream. That’s truly fair. Most of us don’t have this luxury. We are building wealth, along with just paying our bills, and it takes income to do that.

But this idea might not be as far away as you think. Regardless of your timeline, as your wealth grows even before you hit financial independence, I think you should be itching closer to a life designed by you, not your employer or clients.

This might include changing your hours, taking more time off work, participating in mini-retirements, pivoting careers, or starting a business.

This is an idea that Rachael Camp, Founder of Camp Wealth, is routinely discussing both online and with her clients. And I asked her to come on the podcast to do the same. Rachael is a financial planner who helps young professionals maximize their money for financial freedom. She has also redesigned her life over the last few years and she told me it feels way more aligned.

In this episode, we break down the nuance between traditional FIRE and work optionality. Rachael shares steps you can take to start progressing towards a work-optional life and she shares questions to ask yourself to uncover what that life would truly look like. Also at the end of the episode, I ask Rachael to break down some of her most popular tweets from the last month.

This is a really fun, wide-ranging conversation and you can probably tell, I had a lot of blast getting to know Rachael.

So if you’re ready to do the same, let’s get into it. I hope you enjoy my conversation with the former Hoosier turned Denverites…Rachael Camp.

Key Takeaways:

• The difference between traditional FIRE and work optionality
• Important questions to ask yourself to get closer to your ideal life
• Rules to help you spend more
• Why you should take more risks in your 20s
• How to make a plan for your money

More of Rachael:

YouTube: https://www.youtube.com/@CampWealth/videos

Website: https://www.rachaelcampwealth.com/

More of The Struggle is Real:

Find show notes and more at https://www.tsirpodcast.com/

Follow us on Instagram at https://www.instagram.com/tsirpod/

Let’s not sugarcoat it, the path to financial independence is a grind. Even with an aggressive savings rate and an extended bull market run, you’re going to be at it for a while.

Setting the hard work aside, we also have to ask ourselves, what are we racing towards? Yes, of course, financial independence and freedom, but what would you do with that newfound free time?

This is where I’d like to insert the idea of mini-retirements. This intentional time off work can help us reenergize and explore what retirement life would look like. This is actually what our guest, Jillian Johnsrud, did. During her journey to financial independence, Jillian embraced 12 mini-retirements and now she coaches others on how to take a mini-retirement themselves.

I love the idea of mini-retirements. I’ve already taken one in 2020 and plan to take many more throughout my life. Looking back, it was one of the best decisions I made in my 20s but it didn’t come with some doubts. Most notably, is this temporary time off worth delaying financial independence? 

This is a question I asked Jillian and what she told me surprised me….mini-retirements didn’t delay FI for her, they did the opposite. They expedited it. Stick around if you want to hear that story and more.

I hope you enjoy my conversation with the master of retiring often…Jillian Johnsrud.

Key Takeaways:

• The importance of taking breaks on your path to financial independence
• What a mini-retirement is…and isn’t
• Different intentions for mini-retirements
• How to propose a mini-retirement to your manager
• How to structure mini-retirements so they don’t feel wasted
• Crafting your mini-retirement story
• Reconciling embracing mini-retirements and delaying your path to financial independence
• How to reduce costs during a mini-retirement
• Creating your mini-retirement go-bag

More of Jillian:

Website: www.RetireOften.com

Retire Often podcast: www.retireoften.com/podcast/

More of The Struggle is Real:

Find show notes and more at https://www.tsirpodcast.com/

Follow us on Instagram at https://www.instagram.com/tsirpod/

We always hear the importance of taking advantage of our 401K and IRA accounts. The tax advantages and employer match are too good to pass up on. But is this true for early retirees? If I’m planning on retiring in my 40s, should I be locking my money away in these accounts? How do I bridge the gap between early retirement and 59.5 - the age at which I can withdraw from these accounts penalty-free?

Well, the good news is that isn’t 100% true. There are ways to withdraw from these retirement accounts early without paying a 10% penalty and some of these strategies are fairly simple.

Sean Mullaney, President of Mullaney Financial & Tax and writer behind the informative blog, FITaxGuy.com, is here to share how to do this.

In this episode, we deep dive into a couple of the strategies to ensure that your money can be accessible to you if you retire before 59.5. Sean also shares a tax-efficient strategy for which accounts you should withdraw from first.

This is Sean’s 3rd appearance on the show. He also appeared in episodes 39 and 40 where we discussed what you need to know about taxes in your 20s and the mechanics of an HSA.

Every time Sean comes on the show I learn something new. Through this conversation, he actually changed my mind about how I am currently funding my Roth and Traditional accounts. He’s such a wealth of knowledge whenever it comes to the tax code and tax planning.

If you also want to learn from Sean, let’s get into it. I hope you enjoy my conversation with FI Tax Guy…Sean Mullaney.

The discussion is intended to be for general educational purposes and is not tax, legal, or investment advice for any individual. Justin and The Struggle is Real podcast do not endorse Sean Mullaney, Mullaney Financial & Tax, Inc. and their services. 

Key Takeaways:

• A tax-efficient ladder for funding your life post-FI
• How to manage “uncontrolled income” in your brokerage account
• Long-term vs short-term capital gains and how they’re taxed
• Roth basis: contributions and conversions
• Other exceptions to withdrawing money penalty-free from your retirement accounts

Mentions:

Accessing Retirement Accounts Prior to 59.5: https://fitaxguy.com/accessing-retirement-accounts-prior-to-age-59-%c2%bd/

IRS Exceptions to tax on early distributions: https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-exceptions-to-tax-on-early-distributions

IRS Publication 502: https://www.irs.gov/forms-pubs/about-publication-502

More of Sean:

Blog: https://fitaxguy.com//

YouTube: https://www.youtube.com/@SeanMullaneyVideos

More of The Struggle is Real:

Find show notes and more at https://www.tsirpodcast.com/

Follow us on Instagram at https://www.instagram.com/tsirpod/

I love playing with compound interest calculators and one equation I’m routinely calculating is the number of years until I reach financial independence. Using the 4% rule, I multiply my living expenses by 25 to get my FIRE number. I use that, my current net worth and various contribution rates to predict when I’ll reach FI.

But then I started thinking about this equation. Instead of using my current expenses should I use an inflation-adjusted number that would more realistically match my future expenses? Also, now I’m second-guessing my average return rate. Does that include inflation or should I be adjusting that rate too?

All of a sudden, I’m a little turned around. Not knowing if the number in front of me is an undershot or overshot. I don’t want to be so far off the mark that my calculation isn’t giving me a realistic path to financial independence.

So what is the right way to account for inflation whenever running our numbers? Luckily Jesse Cramer is back so tell us the right way to go about this calculation.

Jesse has a way of simplifying topics. He is routinely doing this through his podcast, The Best Interest. Jesse takes complex financial topics and puts them into layman's terms. Jesse is so good at doing this that this is the 3rd time I’ve invited him on The Struggle is Real.

In this episode, we get straight into the topic of inflation and answer questions like why products get more expensive over time, 2 ways to correctly calculate your FI number, and how to protect your portfolio from inflation.

So if you’re ready for that, let’s get into it. I hope you enjoy my conversation with TSIR’s most frequented guest (for now)...Jesse Cramer.

Key Takeaways:

• How products and services get more expensive over time
• How inflation is measured
• 2 ways to calculate your FI number without mistakenly leaving out or double counting inflation
• Does the 4% rule account for inflation?
• How to inflation protect your portfolio
• How concerned a 20-something should be about inflation whenever retirement planning

Mentions:

Accounting for Inflation in Retirement and FIRE Planning: https://bestinterest.blog/accounting-for-inflation-in-retirement-and-fire-planning/

More of Jesse:

Podcast: https://bestinterest.blog/the-best-interest-podcast/

Blog: https://bestinterest.blog/

More of The Struggle is Real:

Find show notes and more at https://www.tsirpodcast.com/

Follow us on Instagram at https://www.instagram.com/tsirpod/

As someone pursuing early financial independence, it is almost guaranteed that over time, a lot of your wealth will come from investment growth but as we all know, it takes money to make money.

The first $100,000 of your net worth is a lot of hard work: you need to make income, live below your means, and aggressively save. And through all of this, your career will be the backbone of this process.

Improving the skills that will make you more valuable is an important journey throughout your 20s. If you put effort in the right places, you will quickly become a high performer and be paid accordingly.

So with that in mind, what should you be focusing on? There are technical skills that will be in high demand in the future (think AI, cybersecurity, logistics) but these are industry-specific. There are also a set of skills that no matter what career path you pursue, will always pay dividends.

Today, I’ll be talking about the latter with Dave Lamont. Dave knows a thing or two about this subject as he’s built an incredible career for himself and not slowing down anytime soon. Dave is the CEO of Renfrew Business Group and president of Renfrew Chrysler, Lloydminster Nissan, and Royalty RV. In this episode, Dave shares 6 essential skills that led him to his success with the hope that you’ll find career success as well no matter how you define that.

So let’s get into it. I hope you enjoy my conversation with former hockey player, car enthusiast, and Author of Crank It!...Dave Lamont.

Key Takeaways:

• Learning work ethic through role models
• How hard work creates luck
• Simply strategies for effectively managing your time
• How to build rapport with colleagues twice your age
• The importance of learning
• Embodying true confidence
• Why looking out for others will pay off

More of Dave:

Crank It! A Playbook for Succeeding in Business and Life: https://www.amazon.com/Crank-Playbook-Succeeding-Business-Life-ebook/dp/B0CBL2J76J

More of The Struggle is Real:

Find show notes and more at https://www.tsirpodcast.com/

Follow us on Instagram at https://www.instagram.com/tsirpod/

You’ve been pouring into your personal finance education and you’re starting to feel more empowered to manage your investments. You might have even played around with online calculators and realized how much that 1% advisor fee is really costing you. But years ago, when you were less confident and didn’t know better, you hired someone to help you with this. They grew into someone you call a friend and although you know the math and feel capable of handling your investments on your own now, you’re having difficulty cutting ties.

It’s not easy to break up with someone especially if they have treated you well, answered your phone calls, and have been sending you an annual Christmas card.

But I help you with the hard things and it’s time. With this in mind,  how can we make this a smooth process, set ourselves up for success, and respectfully and professionally break up with our financial advisor? Well, that’s today’s conversation.

To help me unpack this topic, I invited on Tess Waresmith. Tess is a financial coach that helps people feel confident with investing. But this wasn’t always the case. After socking away a ton of money working on cruise ships after she graduated, Tess hired a financial advisor to help her turn her savings into real wealth. But after some bad advice and other financial mishaps, Tess lost $80,000 and had to reset. Through a lot of self-education, she learned how to invest on her own through simple, yet effective methods.

In this episode, Tess shares the math behind the real cost of a financial advisor. She shares an easy step-by-step process for breaking up with your advisor and how to handle objections if they push back. We also talk about when it might be appropriate to hire help and who might be the right person for that situation.

Let’s get into it. I hope you enjoy my conversation with the aerial aerobatic and high diving financial coach…Tess Waresmith.

Key Takeaways:

• How much a 1% advisor fee costs you over 40 years
• How to compare your advisor’s performance against the average
• A step-by-step process for breaking up with your advisor
• Responding to objections from your advisor
• Financial situations that might require professional help and who to hire
• Simple definitions of common financial jargon

Mentions:

Free Guide: 26 need-to-know investing terms: https://www.moneyconfidentcoach.com/optin1656350743725

More of Tess:

IG: WealthWithTess (https://www.instagram.com/wealthwithtess/)

More of The Struggle is Real:

Find show notes and more at https://www.tsirpodcast.com/

Follow us on Instagram at https://www.instagram.com/tsirpod/